Nasdaq, Borse Dubai raise OMX bid to $4.9 billion

Bidders control nearly half the shares in Nordic exchange operator

By

SimonKennedy

LONDON (MarketWatch) -- Nasdaq Stock Market Inc. and Borse Dubai on Wednesday raised their bid for OMX to around $4.9 billion as the pair also revealed that they now control nearly half of the Nordic exchange's shares.

Nasdaq
NDAQ, +0.08%
and Borse Dubai said that they've secured 47.6% of OMX (OMX) shares through a mix of direct ownership, options and irrevocable undertakings from other shareholders, including Investor AB, the exchange's biggest shareholder.

The offer price for the remaining shares has been raised to 265 Swedish kronor per share from 230 kronor, while the minimum acceptance level for the deal was slashed to 50% from 90%.

The move could head off a potential competing bid from the Qatar Investment Authority, which recently bought nearly 10% of OMX.

Investors who've agreed to sell their shares, which also include Nordea Bank and OMX's founder and chief executive, can back out only if a competing offer is launched of at least 303 kronor a share and Borse Dubai refuses to match it.

"The OMX combination and the prospect of building a world-class global marketplace, unique in its reach and growth potential, will bring benefits to our shareholders and stakeholders alike. We will seek to be a catalyst to attract more investment, listings and trading to the Nordic and Baltic marketplace," said Nasdaq Chief Executive Robert Greifeld.

Shares in OMX added 0.9% at 273.50 kronor in Stockholm.

Nasdaq and Borse Dubai have agreed to a complex deal over OMX intended to end months of fighting between the two exchange groups. See archived story.

Under terms of the deal, Borse Dubai will buy OMX and then pass the exchange on to Nasdaq, all for a roughly 20% stake in the combined group and a 28% stake in the London Stock Exchange (LSE).

Nasdaq said that it will increase the cash component it's paying Borse Dubai by the equivalent of 10 kronor a share. Borse Dubai will finance the remaining increase in offer price of 25 kronor a share.

"The opportunities for OMX, Borse Dubai and Nasdaq to further develop and link mature and emerging markets through our new combination are very significant. These efforts will place the Nordic and the Baltic markets in a key and pivotal position among global financial centers, and Sweden will be a centerpiece for those efforts," according to Borse Dubai Chairman Essa Kazim.

In its own brief statement, OMX said that it will take the raised offer into consideration in its assessment of the structure proposed by Nasdaq and Borse Dubai.

"This move is an acknowledgement that we have taken the right decision when choosing a strategic route," commented OMX Chairman Urban Backstrom.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.